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QUESTION FIVE (a) Explain how the government, through the central bank can use both fiscal and monetary policies to influence the stability and performance

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QUESTION FIVE (a) Explain how the government, through the central bank can use both fiscal and monetary policies to influence the stability and performance of an economy. (10 marks) (b) Explain the relationship between unemployment and inflation rate as was postulated by Philips and hence the Phillips curve. (5 marks) QUESTION SIX (a) Explain the importance of computing national income of a country. (10 marks) (b) Briefly highlight how the government of Kenya tries to promote exports as a means of reducing budget deficits. (5 marks

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